Maruti Suzuki hikes car prices by up to Rs 20,000
Maruti’s Vitara Brezza, Baleno to become more expensive from today.
Maruti Suzuki India Ltd announced on Monday that certain models will undergo price changes ranging from Rs 1,500 to Rs 5,000 (ex-showroom Delhi).
Among the models that are undergoing price change the newly launched models like Vitara Brezza and Baleno which the company stated would witness an increase upto Rs 20,000 and Rs 10,000 respectively.
The price increase is effective from August 1, 2016.
“This price revision is based on factors like segment wise demand, Forex movements and strategic objectives of the company,” the company said in a statement.
The Gypsy, Ertiga, Grand Vitara, S-Cross, Vitara Brezza models under ‘utility vehicles’ recorded the highest amount of increase in sales which was 151.3% since 2015.
The utility vehicles segment sold 17,382 cars in July 2016 as compared to 6,916 cars in July 2015.
The other segments like passenger cars and vans recorded increase in sales by 2.2% and 24.1% respectively.
Maruti Suzuki is one of India’s oldest car brands and among the leaders in passenger vehicles that sold a total of 137,116 units in July 2016.
This was a 12.7% increase over the same period last fiscal year, wherein the company had sold 121,712 units.
The company sold 125,778 units in the domestic market and exported only 11,338.
All models of the company saw an increase in sales figures since last year except for Alto WagonR and Dzire Tour which recorded a decrease of 7.2% and 9.2% respectively.
Maruti had launched Nexa – the company’s automotive sales channel in July last year which the company announced that reeled in 10% of Maruti’s total sales.
In an interview with Economic Times, RC Bhargava, Chairman of Maruti stated that they would increase the number of Nexa outlets until the country is adequately covered with Nexa channels which should further help in increasing sales which comes in from these channels.
Commenting on the poor sales of the light commercial vehicles which sold only 14 cars in July 2016 as opposed to none in 2016, Bhargava stated that light commercial vehicle market used to be very good a few years ago then it declined for various reasons which is picking up again.
He also stated that the company has launched these vehicles on a very small pilot scale to start with and that the company is monitoring the sales of this category in order to make a decision on expansion of sales in the coming year.